So, here I am, wanting to buy a home like so many other people... first, parts of me: I've never been too concerned with credit, so during college and younger years (I'm upper 20's) I didn't take advantage of all the super duper offers I received in the mail. Didn't need them, didn't want them, didn't care. So, now, my credit sucks. I don't have enough good trade lines. Since I didn't bother to open any accounts, the only things on my credit reports are minor collections, student loans, personal information. A few years back, I financed a car through GMAC. That was the first good trade line I had, seriously. But, now, I typically pay that every 2 months (laziness). I'm going to setup autodebit to get it back on track and keep it up to date. I consistently ignore my 2 student loans until they're 3 or 4 months late, and I have a hard time caring about them. They're <$5000 total. I can set those up on autodebit, also, which I'm considering (haven't decided.) Minor and all paid collections <$500 here and there. There's two recent unpaid ones that I'm going to pay immediately, totaling about $1200. There are no bankruptcies, no repossesions, nothing but late payments and paid collections. So, I'm screwed. My credit score (don't laugh!) ranges from 475-530. I've been told that bk folks have higher scores than me! Maybe I'll have the lowest score on the board, I will be so proud. To help myself, I started to apply for a few cards and received (all unsecured) Orchard, Providian, Sears, and Spiegel in the past year. Total credit line about $1900. All of those are paid current, I'm carrying small balances on 1 of them that I pay completely every 3 months or so. I feel like I'm on the right track to getting some good trade lines, am I right?! I talked to a mortgage broker. He's really encouraging me to apply for a mortgage. He got a friend of mine into a home with a mid500 score and I'm hoping for similar results. (0 down$) Given that the rates are so low right now, is it worth it to get into a home at a high subprime rate, then refinance later when things have improved?! Or, should I wait until I'm slightly better off financially (considering waiting a 9 months to a year, basically) as far as collections, lawyer fees, everything! I'm really unhappy where I'm currently renting, I'm a first time home buyer, single parent. If I'm going to move, I'm going to it *now* or close to the end of the school year. Given the bad marks that are hurting my credit reports so much, is there anything additional I can do to improve my situation? I know to pay my car and student loans on time will immensely help. How much is that really going to help, though?! It's certainly not going to bring me a prime market rate in 9 months to a year. Argh. By the way, I think just typing all this out helped me figure out what I should do versus want. -zelda
Zelda,last I heard. it's a seller's market?What kind of down do you have.and what are you planning on buying?
Maybe buyer's market is the wrong term. I'm pleased with the interest rates of late, and consider it a good time to buy and/or refinance. For me personally, it's exciting. There are some reasonably prices home available, although there are alot of "not in my lifetime" homes. I live in Western WA. So, yes I guess buyer's market is the wrong term! I'm considering a TH condo or a small home. approx. $150k. For downpayment, I have around 15K saved, but the brokers I've talked to are encouraging me to save that for extra expenses after I buy. (like rebuilding the crap I buy, I guess?) -zelda
Your post about how you paid stuff late, never paid attention to the credit stuff, and now you want to buy a house and have to deal with it all real quick... Sorry if I offended you... Just teasing. breeze
Your broker is right, except for one thing, keep your money, but don't buy anything. Consider buying next year.......everything is going to drop. It's about to happen.
Zelda.to cut to the quick,your obtaining a mortgage all boils down to how much money you make.and what are your expenses? Plus bear in mind ,when the interest rate drops thats more compation for you.
Frank---Why do you think that? My dad says the same thing; wait six months when the bottom falls out of everything. What makes you say that?
Look at the earning reports for the last year. Nothing looks good. Microsoft at least admitted to a downturn last week, they should have done it sooner. They have all been delaying the inevitable. all of them are delaying the report of losses, which has been keeping the market sideways. The Fed took a wrong turn a year or so ago. I wouldn't buy a pack of juicyfruit on credit right now. We are heading for deflation. The only out from here is us. you and me. save your money. Pay down your debts. In the long run it will do us all good. I could go on and on and on but I don't have the room. good stock tip: FLO wait a little while though it's been riding high.
breeze, I did take slight offense to your reply. I am not "growing up", I'm playing the credit game. Paying bills on time has nothing to do with growing up, imo. This game is not life or any part of "growing up", again, my opinion. My priorities in life are not my credit reports, amount of credit cards, or even owning a home. And, yes, I realize that creditors disagree. Fortunately, I haven't had to deal with them much. I do believe you were teasing, but your response did surprise me. If you read whining in my original message, I apologize - as such a reply would have been completely justified. Thank you for replying again. -zelda
You need to use autodebit and start yesterday. My life changed so much when I signed up for Wells Fargo auto pay. I don't write checks for rent, phone, cable tv, water/garbage anymore. They are paid on time everytime and I don't have to do a thing. A few others that change amounts every month I make a few clicks, type an amount and off they go. Just make sure you have money in the bank That is all you have to do. These days when we have so much to do, including leisure/rest time, this makes life much easier and why risk that late pay when you don't have to. Just my 2¢ John
Just a comment on the info you provided..... First, you really have to question why the broker is telling you to go for low or no downpayment programs - those will almost always have higher interest rate/points than 5%, 10%, or 20% down. It could be that his profit margin is higher on the low/no down programs he offers. Second, banks and even FHA like to see the last 12-24 months w/ perfect payment histories. You've not given them any reason to believe that you'd pay them on time or not.
Buyers market in El Paso, TX... but the catch is that you have to buy a house in El Paso, Tx. Breeze, you cracked me up again...I just found this thread and read your response.
frankowes, you really think that the realestate market is going to take a downturn next year? I am considering to purchase a townhouse/condo by the end of 2002. I am worried that by that time prices will be a lot higher. I hope your right and prices are going to be lower or even about the same level as now would be great. and breeze, grow up!!! lol.
